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Social, societal and environmental responsibility

5.2 Information concerning Danone's social, societal and environmental performance in compliance with the Grenelle II law

DANONE

REGISTRATION DOCUMENT 2015

177

Absenteeism

The absenteeismrate (see

Methodology Note

) was estimated at 2.3% in

2015. Given the limited availability of information in certain countries,

Danone made estimates for this indicator as of December 31, 2015.

The absenteeism rate was used in 2015 to assess the benefit of a

systematic program to promote health and quality of life at the work-

place, which would result in a lower illness-related absenteeismrate.

Social relations

Organization of social dialogue

The attention given to its employees and the desire to ensure their

best possible growth in a fast-changing economic environment are

at the heart of Danone's culture and its dual economic and social

project. Social dialogue is therefore one of the key elements to

Danone's long-term success as well as a means of supporting its

transformation to benefit the company's performance.

Social dialogue at Danone is organized around:

•

aworldwide social dialogue body: the Information and Consultation

Committee (ICC) and its Steering Committee (

Comité de Pilotage

– COPIL

);

•

the negotiation andmonitoring of international framework agree-

ments with the IUF (International Union of Food Workers), see

section 5.1

Danone social, societal and environmental approach

;

•

active social dialogue at Danone's subsidiaries with union and

employee representatives.

Danone also promotes the application by its subsidiaries of best

practices related to social dialogue, particularly through the

Danone Way initiative based on the “Social Dialogue and Employee

Involvement” key practice (see section 5.1

Danone social, societal

and environmental approach

), which includes:

•

evaluating the policies implemented by the subsidiaries, par-

ticularly with regard to the application of the IUF agreement

on social dialogue, the creation of a favorable framework for

social dialogue, the organization of elections for independent

employee representatives, and the organization of discussions

with employee representatives and negotiation of agreements;

•

monitoring indicators such as the number of economic and em-

ployment information sessions for all employees, the proportion

of employees represented by employee representatives and

the number of annual meetings between site management and

employee representatives.

Review of collective agreements

Nine global agreements between Danone and the IUF were in effect

as of December 31, 2015 (see section 5.1

Danone social, societal and

environmental approach

). They mainly concern diversity, social dia-

logue and steps to be taken when changes in business activity affect

employment or working conditions. The most recent agreement

was signed on September 29, 2011 and addresses health, safety,

working conditions and stress.

The nine global agreements are deployed at each Danone subsidiary

and their application is jointly assessed each year at several subsid-

iaries by a representative from Danone and a representative from

the IUF. Between 2009 and 2015, more than 50 visits were made to

fully consolidated subsidiaries.

Three European agreements were also signed over the last three

years to support the implementation of the organizations' savings

and adaptation plan in Europe and, in particular, the industrial

facilities of the Fresh Dairy Products Division.

In addition, collective agreementsmay also be signed at the subsidiary

and country level, such as the amendment to the agreement on the

donation of leave time for a seriously ill child or spouse signed in

April 2015 for Danone Produits Frais France (Fresh Dairy Products,

France) or the extension of the agreement on work-at-home for

Danone SA (Danone's parent company).

Health and safety

Workplace safety

Since 2004, Danone has been committed to a worldwide program

known as WISE (see section 5.1

Danone social, societal and environ-

mental approach

), with the goal of developing a safety culture at all

its sites in order to significantly reduce the number of workplace

accidents. This program is implemented worldwide in each Division,

in the plants and logistics warehouses, and within the distribution

channel. It also applies to subcontractors working at Danone sites.

Danone decided to enhance the WISE program, renamed Wise²,

with more far-reaching goals by 2020: zero fatal accidents and a

reduction by half of the number of workplace accidents withmedical

absence compared to the reference year 2014. To this end, Wise²

aims to ensure Danone's compliance with its higher safety at work

standards and promote amore comprehensive prevention approach

that includes, in particular, health risks, ergonomics and well-being

in the workplace.

The WISE program and health and safety management are coor-

dinated by the Human Resources Department with the support of

designated managers at each level of Danone's organization.

Workplace accidents

The annual frequency rate of workplace accidents with medical

absence (FR1 rate, see

Methodology Note

) rose slightly from 1.9 to

2.0 between 2014 and 2015. Danone's 2015 severity rate (SR rate,

see

Methodology Note

) for workplace accidents withmedical absence

was 0.1 for the Safety Scope (see

Methodology Note

).

For the past three years, Danone has expanded its workplace ac-

cident management to include accidents with and without medical

absence through systematic monitoring of the FR2 rate (accident

frequency rate without medical absence). Danone now manages

safety improvements at each of its sites and subsidiaries by mea-

suring the decline in both types of accidents.

In 2015, the continued improvement in the results of the Waters

division (-20%) and of the Early Life Nutrition division (-14%) helped

limit the increase in Danone's FR1 rate (+5%) despite the integration

of Centrale Danone (Fresh Dairy Products, Morocco), whose FR1 rate

was 5.9. At constant scope, Danone's FR1 rate decreased by 10%.

Danone's 2015 frequency rate (FR2 rate, see

Methodology Note

) for

workplace accidents without medical absence was 3.5 for the Safety

Scope (see

Methodology Note

).